Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium price of good B -, and the equilibrium quantity A) rises; decreases B) falls; increases C) falls; decreases D) rises; increases

Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium price of good B -, and the equilibrium quantity A) rises; decreases B) falls; increases C) falls; decreases D) rises; increases

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 3MC

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Goods A and B are substitutes in production. The price of good A rises. As a result,
the equilibrium price of good B and the equilibrium quantity.
A) rises; decreases
B) falls; increases
C) falls; decreases
D) rises; increases

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